Financial and Non-Financial Rewards and Its Impact on Employee Performance in the Banking Sector of Pakistan

Abstract

The predominant asset for any organization is human resource, allowing remaining competitive in this fast-forward condition. The most difficult challenge experienced by banks in Pakistan is the acquisition and retention of right workforce. In this regard, this study aims to examine the association between the job performance and incentives of Pakistani banking employees. A quantitative research design is incorporated to collect primary data from six leading banks in Pakistan. A total of 180 employees were included from these banks based on random sampling technique. Pearson correlation and regression analysis are employed to examine the primary data using SPSS software. The findings have shown a positive association of financial and non-financial incentives to enhance the job satisfaction and task performance of employees. The consequences also show impact of high perks, supportive management and career growth opportunities on the employees’ performance. It has been concluded that managers should endow rewards to current and active employees. Similarly, managers should engage employees in decision-making process to increase their loyalty and morale toward the organizational development.